I have a go pro 2 and the video is all you need unless what you have seen does not meet your expectations, which I could not imagine.

Depends on your viewing environment, I guess. I'm primarily interested in my 1080p plasma TV. It even does 3D, but I figured I should draw the line somewhere (and yep, I did see the GoPro 3D accessory kit).

I'll level with you that I am somewhat of a videophile. So, it's not exactly like the GoPro HD Hero2 isn't good enough, it's more like it's not as good as it could be. But let's be honest, even 480p/30 is fine if all you want is just to see the track and the other cars. Most track vids I've seen on youtube aren't even that high (well, they're getting better of course).

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The problem is sharing your video at the 1080 w/30 frames per second creates a huge file that is too difficult to upload/download to utube.

I have absolutely no problem with downconverting for web viewing. I want all the original source material to be as high quality as possible, however.